Xiaomi Corp. and several other Chinese electric vehicle makers are offering purchase-tax subsidies to cushion the impact of reduced government incentives set to take effect in 2026, reports Caixin. On Friday, Xiaomi announced a limited-time subsidy program for buyers who place orders before Nov. 30, offering up to RMB 15,000 ($2,100) to cover the difference in vehicle purchase tax if their cars are delivered after year-end. The offer applies to all three of Xiaomi’s current models.
Several rivals, including Li Auto Inc., Nio Inc., Geely Holding Group Co.’s Zeekr, and automakers under Huawei Technologies Co. Ltd.’s Harmony Intelligent Mobility Alliance, have rolled out similar programs in recent weeks. Most target models launched in late September, such as Li Auto’s L6 and Nio’s updated ES8, with subsidy windows extending through December.
The year-end push reflects automakers’ race to lock in sales ahead of a major policy change. Starting Jan. 1, 2026, China will scale back its generous new energy vehicle (NEV) tax exemption. Buyers will be required to pay 5% purchase tax on NEVs—half the standard rate—with a maximum discount capped at RMB 15,000.